More On Legal & Compliance
from The Advisor's Professional Library- Meeting and Exceeding Clients and Regulators’ Expectations Although it can be difficult, there are ways for RIAs to meet or exceed client expectations, increase customer satisfaction, and help firms retain current clients and attract new ones.
- Privacy Policies and Rules Whether an RIA is SEC or state-registered, the firm must have policies and procedures in effect to protect clients’ privacy. Policies and procedures should explicitly require an RIA to send out its privacy notice each year.
U.S. partnerships may now send out Schedule K-1 to recipients electronically, according to new rules issued Monday by the IRS.
Schedule K-1 is used to report a beneficiary's share of income, deductions, credits and other items from pass-through entities, such as limited partnerships, S Corporations, income trusts and limited liability companies.
Partnerships must report this information annually to the IRS and provide a copy to their partners. The IRS said U.S. partnerships filed some 26 million K-1s in 2011.
The new guidance, Revenue Procedure 2012-17, sets out rules that describe when a partnership may provide K-1s to partners electronically instead of on paper.
A partner must give its consent before the partnership provides the K-1 electronically. It may do so electronically, including through secure email or on a partnership’s website. Partners must to be informed about changes in software, and instructed about accessing and printing electronic statements.
The IRS said K-1s generally must be provided to recipients by the due date of Form 1065, U.S. Return of Partnership Income. For partnerships operating on a calendar year, the due date this year is April 17.
By allowing electronic transmission of K-1s, the IRS hopes partnerships will find it easier to provide copies to their partners, and lower the expense associated with printing and mailing K-1s to partners who elect to receive them electronically.
